A MULTI-COUNTRY COMPARISON OF PERCEIVED ENVIRONMENTAL CHARACTERISTICS, INDUSTRY EFFECTS, AND PERFORMANCE IN ENTREPRENEURIAL FIRMS

J. B. Arbaugh, S. Michael Camp and Larry W. Cox
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J. B. Arbaugh: University of Wisconsin Oshkosh, College of Business Administration, USA
S. Michael Camp: Center for Entrepreneurship, Fisher College of Business, The Ohio State University, USA
Larry W. Cox: Miller College of Business, Midwest Entrepreneurial Education Center, Ball State University, USA

Journal of Enterprising Culture (JEC), 2005, vol. 13, issue 02, 105-126

Abstract: This paper examines the relationship between industry effects, environmental perceptions, and firm performance in a multi-country sample of entrepreneurial firms. Using a sample of 1045 finalists in Ernst & Young's International "Entrepreneur of the Year" competition, we examined whether environmental constructs that have been studied and validated in North American entrepreneurship research were generalizable to firms in fifteen countries located in Europe, Asia, and Africa. Using measures common to North American entrepreneurship research; we identified two environmental dimensions in subsamples of North American (United States and Canada) and non-North American firms: dynamism and hostility. However, while the constructs were identified in both subsamples, they also were not significantly associated with firm performance. We conclude the paper by suggesting this lack of environmental perception-firm performance relationship may be attributable to an entrepreneurial mindset that focuses on identifying and recognizing specific opportunities rather than responding to general characteristics of the external environment.

Date: 2005
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DOI: 10.1142/S0218495805000082

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